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Industry Analysis Paper

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The Real Estate Agents and Brokers Analysis
Ying Wang
Monroe College

Ying Wang, department of MBA, Monroe College.
This research’s some data is supported by CRIC Database (Chinese real estate database).
Ying Wang, department of MBA, Monroe College, contact: wywangying1202@gmail.com
Abstract
This paper analyses the real estate agents and brokers with applying Porter Five Forces analysis. The overall objective of the analysis is to determine if the industry is attractive from a competitive structure point of view, using Porter’s Five Forces framework for my analysis of the industry’s competitive structure. According to my analysis, I draw a conclusion about if this industry is attractive for me.
Key words: Porter Five Forces, industry analysis

The Real Estate Agents and Brokers Analysis
Background
Industry description
The Offices of Real Estate Agents and Brokers’ NAICS code is 531210.This industry comprises establishments primarily engaged in acting as agents and/or brokers in one or more of the following: (1) selling real estate for others; (2) buying real estate for others; and (3) renting real estate for others. After more than 100 years of development, the U.S real estate industry is relatively mature under the legal environment and financial instrument. The house price has increased 2 or 3 times during the past 100 years. As shown in Exhibit 1-1.
Exhibit 1-1

Source: “U.S. house prices realty check”, http://www.economist.com/blogs/graphicdetail/2013/06/us-house-prices, Jun 10th 2013.
Industry revenue
We all know that the U.S real estate transaction is mainly concentrate in secondary house. Agents and brokers are the key channel to complete every transaction. On the other hand, nonemployee is another part of the revenue of this industry. So the industry revenue in 2007 and 2008 is shown in Exhibit 1-2.
Exhibit 1-2

Source: U.S Census

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